Dividend Alert: Leading Surfactant Company Declares Rs 18 Interim Dividend for FY25; FIIs increases Stake!

Galaxy Surfactants Ltd has announced an interim dividend of Rs 18 per equity share, each with a face value of Rs 10, for the financial year 2024-25. This decision was made during the Board of Directors meeting held on March 15, 2025. The record date for the dividend payment is set for March 20, 2025, with the payment to be made within 30 days to shareholders listed in the Register of Members on the record date. The company has made this information available on its website. Galaxy Surfactants is a notable player in the surfactants industry, providing essential ingredients for home and personal care products. Despite a challenging period with a 1-year return of -9 per cent and a 3-year return of -28.01 per cent, the company's decision to declare a dividend reflects its commitment to returning value to its shareholders.

Galaxy Surfactants Ltd, established in 1986, is a key manufacturer in the surfactants industry, specializing in performance surfactants and specialty care products. The company offers over 205 product grades that are integral to consumer-focused home and personal care items such as hair care, oral care, skin care, cosmetics, soaps, and detergents. As a preferred supplier to both multinational corporations and regional FMCG brands, Galaxy Surfactants plays a critical role in the supply chain of everyday consumer products. As of March 13, 2025, the company's stock is priced at Rs 2081.55, with a market capitalization of approximately Rs 7,380 crore. Despite recent stock performance challenges, Galaxy Surfactants remains a significant entity in its sector. The company has been maintaining a healthy dividend payout of 23.5 per cent.

In the Quarterly Results of December 2024, the company reported revenue of Rs 1,041.69 crore, reflecting a YoY growth of 10.76 per cent but a QoQ decline of 2.00 per cent from Rs 1,062.99 crore in September 2024. The net profit stood at Rs 64.61 crore, showing a YoY decline of 9.47 per cent and a QoQ decline of 23.73 per cent from Rs 84.71 crore. The net profit margin for December 2024 was 6.20 per cent, compared to 7.97 per cent in September 2024 and 7.59 per cent in December 2023.

For the full year FY24, revenue was Rs 3,792.24 crore, marking a decline of 15.01 per cent compared to Rs 4,461.96 crore in FY23. The net profit for FY24 stood at Rs 306.54 crore, showing a decline of 28.32 per cent from Rs 266.01 crore in FY23. The net profit margin for FY24 was 7.01 per cent, lower than 8.32 per cent recorded in FY23.

As of December 2024, the shareholding pattern stands as follows: Promoters hold 70.91 per cent, Foreign Institutional Investors (FIIs) hold 4.19 per cent, where FIIs increase stake of 0.11 per cent last quarter, Domestic Institutional Investors (DIIs) hold 12.98 per cent, and the public holds 11.91 per cent.

With a PE ratio of 24.2x, the company trades at a premium compared to the industry PE of 28.4x. The company has ROCE of 17.4 per cent and ROE of 14.9 per cent.  

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.